The master budget of Knope Inc. shows that the planned activity level for next year is expected to be 25,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected:

Indirect labor................................................. $720,000 Machine supplies.............................................180,000 Indirect materials.............................................210,000 Depreciation on factory building..................150,000 Total manufacturing overhead.................$1,260,000

A flexible budget for a level of activity of 30,000 machine hours would show total manufacturing overhead costs of

Group of answer choices

$1,260,000

$1,512,000

$1,362,000

$1,482,000